Okada seals gaming deal with PH firms
Japanese gaming magnate Kazuo Okada: Teaming up with Antonio family AP FILE PHOTO
The group of Japanese gaming magnate Kazuo Okada has addressed the foreign equity limit on land ownership, snagging a $2-billion gaming and entertainment complex at the Pagcor Entertainment City in Parañaque.
In a disclosure late Friday, Okada’s Universal Entertainment Corp. said it had signed a property deal with two local partners—Century Properties Group Inc. and a privately held firm called First Paramount Holdings 888 Inc.—that would give the Filipino companies 60 percent ownership of Eagle 1 Landholdings Inc., the Japanese group’s property affiliate in the country.
Eagle 1 owns the 44-hectare land in Pagcor City where Okada’s $2-billion “Manila Bay Resorts” will rise as part of an envisioned Las Vegas-like gaming and entertainment cluster.
Land issue solved
Universal said Eagle 1 had agreed to issue 720 million voting preferred shares to Century and First Paramount. Century, controlled by the Antonio family, earlier announced that its share in this investment deal consisted of 432 million voting preferred shares, representing 36 percent of Eagle 1’s pro forma capital stock.
In its statement, Universal said the twin deal would put more than 60 percent of Eagle 1’s ownership in local hands and resolve the land ownership requirements of the Philippines.
As of press time, there was no information available on the principal backers of First Paramount Holdings, which will acquire 288 million voting preferred shares in Eagle 1.
“The impact of this agreement on the financial forecasts of the company will be minimal,” Universal said.
Luxury hub
As part of the deal, the Century Properties Group would develop 5 ha of land within the Manila Bay Resorts property, building a cluster of luxury residential and retail buildings that will total over 300,000 square meters of gross floor area upon completion.
Licenses to build and operate gaming resorts in Pagcor City had earlier been awarded to only four proponents. Apart from Okada’s group, other licensees are tycoon Enrique Razon’s Bloomberry Resorts, the Melco Crown Entertainment-Belle Corp. group and Andrew Tan-Genting group partnership’s Travellers International Hotel Group. Only Bloomberry’s Solaire Manila is operational so far.
The Antonios came into the picture after talks between Okada and Robinsons Land Corp. on a property and gaming partnership were aborted. This was at the height of an investigation in the United States into allegations that Okada had spent up to $40 million to bribe Philippine gaming officials. Philippine justice officials are also looking into these allegations. Okada has denied it.
The deal struck by Century Group with Okada is different from the aborted framework with Robinsons Land Corp., which would have allowed the Gokongwei-led firm to acquire a majority stake in Eagle 1 and a minority interest in the gaming facility to be operated by Okada’s Tiger Resorts, Leisure and Entertainment.
Century Properties has 28 years of experience in developing upscale properties, including Essensa East Forbes at Bonifacio Global City.
RELATED STORIES:
Okada refutes bribe raps on PH casino
Okada: Foreign equity limit in Pagcor City project addressed
Okada no show at DOJ probe into anomalous casino project
